UPDATE 1-Rowan resumes construction of fourth EXL jack-up rig

* Expects to spend $120 mln on construction

* 2010 capex to rise by $50 mln

* 2009 capex of $630 mln not to be significantly impacted

* Delivery of rig expected in Q1 of 2012

* Shares rise 1 pct

Oct 5 (Reuters) - Rowan Cos Inc (RDC.N) said it would resume construction of a fourth EXL class jack-up rig as it expects an increase in demand by the time the rig is delivered in the first quarter of 2012.

As a result, the contract driller said it expects its 2010 capital expenditures to rise by about $50 million to a range of $375 million to $400 million, while its 2009 capex budget of $630 million is not likely to be significantly impacted.

The construction of the rig was suspended earlier this year due to liquidity concerns and a weakening jack-up drilling market, the company said.

Rowan said its decision to resume construction was based on "substantial positive changes" in its liquidity outlook through 2010 and its expectation of an "attractive" return on the remaining $120 million that is need to complete the construction.

"We believe the recovery outlook in global oil demand and a potential re-tightening of rig markets will have gained momentum by the time this rig is delivered in 2012," Chief Executive Matt Ralls said in a statement.

Rowan said its first three EXL rigs -- which drill high-pressure, high-temperature and extended-reach wells in jack-up markets -- remain on schedule and on budget, with deliveries scheduled for the second, third and fourth quarters of 2010, respectively.

Shares of the company were trading up 1 percent at $21.80 Monday early morning on the New York Stock Exchange. (Reporting by Antonita Madonna Devotta in Bangalore; Editing by Anne Pallivathuckal)